Smart building investments reached $5.4bn in 2019

Investments in smart buildings in the year 2019 reached $5.4 billion, spread across 316 funding rounds, according to a new research report M&A & Investments in Smart Buildings H2 2019, conducted Memoori.

The market researcher’s smart building report, which is updated on a half-yearly basis, draws upon data in seven key categories including smart home, smart building, smart grid and property technology, among others.

The report reveals that the level of investments for 2019, albeit lower than the record level of $7.8 billion in 2018, represents a 61% rise compared with 2017, the year in which $3.3 billion was invested in total.

Of the 970 investments made over the last three years, 54% were to North American companies, while 35% of the funding rounds were in Europe and the Middle East and 11% in the Asia Pacific region.

The substantial rise in investments in 2019 compared with 2017 signifies “growing acceptance and adoption of intelligent building technology”, as well as “increased confidence by investors in the sector”, said in a statement from Memoori.

Market growth has also been highlighted by Fortune Business Insights, which has projected that the smart home market will be worth $622.59 billion by 2026, representing a compound annual growth rate of 29.3%, in its Smart Home Market Size, Share & Industry Analysis report.

Looking ahead, Memoori envisages that funding in the sector will continue to progress at the current levels, into 2020.